Question: weekly demand for sameswing cell phones at a top sell...
Weekly demand for Same-swing cell phones at a Top Sell store is normally distributed with a mean of 400 and a standard deviation of 150. Samsung takes three weeks to supply a Top Sell order. Top Sell is targeting a cycle service level of 98 percent and monitors its inventory continuously.
a) The manager orders a fixed quantity of 1,000 Same-swing cell phones every time he/she places an order. How much cycle stock does Top Sell carry?
b) What is the expected average amount of inventory of Same-swing cell phones carried at Top Sell?